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hi john
apologies if i am repeating my self
i am confused by the examiner response to the two questions Q3a – December 2012 and P4 June 13 2c
in P4 June 13 2c the examiner didn’t use new share price of the combined company during calculation of share for share exchange (cash offer of 1.33 plus one share for every 2)
however the share price of the combined company was used in the answer for Q3a – December 2012 which 3.64
why is that? wordings of both questions are exactly similar.
please advise
It depends whether we are look at it from the point of view of the acquiring company (who do have information to estimate what the new share price will be) or from the point of view of the shareholders of the target company, who will not have that information.
If it is not clear which in the question, then state your assumption (as always in Paper AFM) and you will still get the marks.
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